Tax Laws Amendment (2012 Measures No. 2) Act 2012 (99 of 2012)

Schedule 3  

Part 4   Application

50   Main application rules

(1) The pre rules, interim rules or prospective rules apply to an assessment of the head company of a consolidated group or MEC group for an income year in respect of an entity (the joining entity ) that becomes a member of the group at a time (the joining time ), in accordance with subitems (2), (3), (4) and (5).

(2) The pre rules apply, for the income year in respect of the joining entity, if:

(a) the joining time is before 12 May 2010; or

(b) the arrangement under which the joining entity joined the group commenced (see item 52) before 10 February 2010.

(3) Despite subitem (2), the interim rules apply, for the income year in respect of the joining entity, if:

(a) both of these conditions are satisfied:

(i) apart from this subitem, the pre rules would apply, for the income year in respect of the joining entity, in accordance with subitem (2);

(ii) the head company’s latest notice of assessment, for the income year, that relates to the application of the original 2010 law in respect of the joining entity, was served on the head company by the Commissioner on or after 12 May 2010 and on or before 30 March 2011; or

(b) both of these conditions are satisfied:

(i) the joining time is on or after 12 May 2010;

(ii) the arrangement under which the joining entity joined the group commenced (see item 52) on or after 10 February 2010 and on or before 30 March 2011.

(4) The prospective rules apply, for the income year in respect of the joining entity, if:

(a) the joining time is on or after 31 March 2011; and

(b) neither subitem (2) nor (3) applies.

(5) Despite subitems (2) and (3), the original 2002 law applies, for the income year in respect of the joining entity, if the head company’s latest notice of assessment, for the income year, that relates to the application of subsection 701-55(6) of the original 2002 law in respect of the joining entity, was served on the head company by the Commissioner before 12 May 2010.

(6) Subitem (5) does not apply if:

(a) the head company requests an amendment of the assessment and the amendment relates to the application of subsection 701-55(6) of the original 2002 law in respect of the joining entity; or

(b) the amendment of the assessment, if made:

(i) would relate to an asset of a kind mentioned in paragraph 701-63(3)(b) of the original 2010 law as amended by the pre rules; and

(ii) would not be consistent with the outcome that arises under the pre rules for assets of that kind.